Thai authorities propose regulatory framework for crypto custodians.

The Securities and Exchange Commission of Thailand (SEC) opened public hearings on proposed amendments to the rules governing digital asset custodians.

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The agency expects to receive comments from interested parties by 22 September.

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The new rules address the custody of fiat currencies, crypto-lending activities, and earning interest on deposits in digital assets.

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The SEC intends to prohibit firms from using client funds \”for the benefit of others\”, and from handling digital assets, including crypto-lending activities.

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\”The use of clients’ fiat currencies will also be prohibited, except for deposits in commercial banks\”, the accompanying commentary notes.

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The new rules clarify the regulatory framework for withdrawals and transfers of fiat money from digital-asset accounts. These operations must be executed using multisignature wallets.

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The regulator says the rules will strengthen investor protection and the reliability of crypto-service providers, ensuring the accuracy and timely updating of investors’ asset data.

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As reported, the SEC is considering regulating the DeFi sector.

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Earlier, the Bank of Thailand announced the introduction of rules governing fiat-backed stablecoins, assets, and algorithmic \”stablecoins\”.

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In May, plans by the local anti-money-laundering office to require Bitcoin exchanges to scan chips embedded in citizens’ identification cards when opening new accounts were revealed.

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